T4 Doesn't Include Company RRSP

Sage BusinessVision

Sage BusinessVision
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T4 Doesn't Include Company RRSP

  • Our company offers a matching RRSP program, the company portion of the RRSP paid is a taxable benefit to the employee. This amount is correctly included in each employee’s gross earnings on their pay stub and in the Payroll Journal in BV. However it is not included in Box 14, Employment Income on the T4’s. I am forced to manually prepare T4’s for any employee participating in our RRSP program. Does anyone else with a matching RRSP program successfully use BV for payroll?
  • If you put the RRSP (company matching amount) in the benefit section, make sure the "TAX" box is checked in the line item under Benefit.

     

    This way, this amount will be included in the BOX 14 as well as BOX 40.

     

     

  • I also found this error and was forced to create T4s with a different software.  According to CRA you do not have to deduct Taxes from Company RRSP Contributions.  So how do you handle that?  I do NOT want to deduct taxes from the RRSP benefit but I do want to add it to Box 14 and Box 40.

     

    Thanks

     

  • If you read the latest T4130 guide, it actually says:

     

    Contributions you make to an employee’s RRSP and RRSP administration fees that you pay for your employee are considered to be a taxable benefit for the employee... Although the benefit is taxable and has to be reported on the T4 slip, you do not have to deduct income tax at source on the contributions you make to an employee’s RRSPs if you have reasonable grounds to believe that the employee can deduct the contribution for the year...

     

    So while you are technically right, you should have appropriate documentation to show the "reasonable grounds" for not withholding.

     

    The only way that I have ever been able to have BV payroll report the benefit in both Box 14 and Box 40 is to make it taxable.

     

    Lyle